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The airline, the second largest in Latin America, warned that it is responsible for 21,000 jobs in the region, including 14,000 in Colombia.
Avianca Holdings Group filed for bankruptcy Sunday as the airline industry faces an unprecedented crisis as a result of internationally imposed travel restrictions to limit the spread of the virus, according to Business Insider.
The medical crisis has led several countries around the world to impose strict travel restrictions, leading to a collapse in demand from the airline industry.
The crisis is hitting the industry hard
Many companies in the industry face immediate financial difficulties, while some warn that they will collapse if they do not receive financial aid.
In a statement released Sunday, the Colombian operator announced that it had filed for bankruptcy in a New York court.
“Avianca is facing the biggest crisis in the company’s 100-year history as we feel the effects of the Covid-19 pandemic,” said Anko van der Werff, CEO of Avianca.
The company motivated the decision due to the impact of the restrictions on Avianca’s operations, in the context in which the company’s revenues have decreased by 80% in the last two months.
The airline, the second largest in Latin America, warned that it is responsible for 21,000 jobs in the region, including 14,000 in Colombia.
Avianca Holdings’ fleet includes 158 aircraft flying in 27 countries.
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